Just a question, maybe eric can answer. If MTEI is primarily interested in oil and gas in WVA, and if they own 1300 acres fee with an additional 1300 of mineral rights then why don't they try to sell the coal reserves that they own and sublease the coal reserves that they have leased. Depending upon how large the tracts are, the coal rights may be valuable. I mention this because AEI of Ashland, KY just purchased Ziglar coal, with operations in WVA, as well as other places. This made AEI the 5th largest coal producer in the U.S. I'm told that they are looking to buy even more coal properties.
Not trying to be negative, but, the 1300 acres are said to be spread out over 30 separate properties. It may be that they are so spread out that deep mining would not be practical. If that is the case, then the value of the coal should not have even been mentioned by the company, because for all practical purposes it has no value if it can't be mined. If it turns out, however, that the properties join others that currently are being mined, then some sort of royalty agreement could be made with the company mining the coal on adjacent properties. All of this information will come out when the engineering company in WVA files its report with MTEI.
Regards,
Lonnie |
